The government is making progress in managing the national debt, focusing more on reducing it as a percentage of the country’s overall economic output rather than solely in absolute terms. According to provisional financial results for the fiscal year ending in July 2024 released by the Ministry of Finance this week, the total national debt reached $10.309 billion by the end of July 2024, representing 78.3 percent of the Gross Domestic Product (GDP).
The Ministry noted that government debt has been on a downward trend, decreasing from 90.6 percent in FY2021-2022 to 82.0 percent in FY2022-2023, and further down to 78.3 percent by the conclusion of FY2023-2024. Permanent Secretary for Finance, Shiri Gounder, emphasized that strengthening fiscal and debt sustainability is a core priority for the government.
Gounder stated that the fiscal consolidation strategy for FY2023-2024 has been solidified through a blend of strategic revenue reforms, prudent expenditure policies, and a robust economic recovery. He highlighted that Fiji’s economy is thriving, underpinned by strong performances in critical sectors like tourism and resource-based industries, along with improving business confidence following the announcement of the FY2024-2025 National Budget.
The government reported a net deficit of $443.6 million, which equates to -3.4 percent of GDP. This figure is significantly lower than the $639.1 million or -4.8 percent of GDP anticipated in the national budget from June 2023. Total revenue for the period was $3.645 billion, surpassing the revised forecast by $68.3 million due to higher-than-expected tax and non-tax revenue collections. This represents an increase of $896.1 million or 32.6 percent compared to the previous fiscal year, FY2022-2023.